by David Engstrom:
As I perused one of the financial channels today I happened upon a commentary about gold. The lead-in to the interview was, “Gold is having a rough go of it …” The anchor went on to say gold is “range bound.”
My immediate thought was, which market are you watching? If Gold is having a rough go of it what can we say about the markets? So as not to spout off without facts, I immediately pulled up charts on the Dow, NASDAQ and S&P 500.
Year-to-date the Dow is up .7%, the NASDAQ is up 5.9% and the S&P is up is up 5.5%. Now let’s see how rough of a time gold is having. Year-to-date gold is up 7.3%. Cleary this is a prime example of media bias. For 14 years this has been the kind of reporting that has kept gold investing a dirty little secret shared by only a small percentage of investors who see through the smoke screen of data released on a daily basis.
Now let’s take a little broader look at the markets as compared to gold. Over the last 14 years gold has had one down year and is still up more than 350%. The Dow on the other hand is barely up 41% over the same 14 year period. The S&P is up 32% and the NASDAQ is up 8%. Incidentally, since the beginning of year 2000 silver is also up more than 250%. While gold bugs get blasted on nearly a daily basis for their loyalty to the yellow money, the markets are ...